Lockheed Martin posts higher profit, sees 2010 down

Lockheed Martin Corp , the top U.S. defense contractor, posted higher third-quarter profit and raised its 2009 outlook on Tuesday, but added that it expects per-share earnings to fall in 2010.

Net earnings came to $797 million, or $2.07 a diluted share, for the third quarter, compared with $782 million, or $1.92 a share, a year earlier.

The company said the latest results include a pension adjustment and a tax benefit from the resolution of a U.S. Internal Revenue Service examination that together decreased per-share profit by 4 cents a share.

Analysts had expected profit of $1.83 a share, according to Thomson Reuters I/B/E/S.

Quarterly revenue rose about 5 percent to $11.06 billion but fell short of the $11.40 billion expected by analysts.

Lockheed said it now expects per-share profit for 2009 of $7.40 to $7.60, up from a prior forecast of $7.15 to $7.35. The new outlook reflects the tax benefit of 15 cents tied to the IRS examination and an increase in other non-operating income.

But For 2010, Lockheed said it expects per-share profit in the range of $7.05 to 7.25.

Analysts have been expecting per-share profit of $7.37 for 2009 and $7.89 for 2010, according to Thomson Reuters I/B/E/S.